Exhibit 99.1

                   Pier 1 Imports, Inc. Reports April Sales;
                Provides Guidance for First Quarter Fiscal 2007;
               Retains JPMorgan for Strategic Alternatives Review

     FORT WORTH, Texas--(BUSINESS WIRE)--May 4, 2006--Pier 1 Imports, Inc.
(NYSE:PIR) reported that sales for the four-week period ended April 29, 2006
aggregated $111,550,000 a decrease of 8.7% from $122,218,000 last year, and
comparable store sales declined 11.5%. Year-to-date sales for the two-month
period amounted to $255,208,000, down 3.3% from $264,023,000 last year, and
comparable store sales declined 6.5%.
     Marvin J. Girouard, Pier 1's Chairman and Chief Executive Officer,
commented, "Sales in April were disappointing. The slight improvement in
customer traffic in late March did not continue into April. In May, Pier 1's new
summer catalog will be distributed to approximately 12 million customers. Our
television advertising includes new 30 and 15 second commercials that began
airing this week. We plan to increase spending on advertising during May and
June in an effort to increase traffic. We will also continue to carefully
monitor inventory and cash. Over the next several months, we believe that the
new merchandising and marketing strategies will begin to improve customer
traffic and sales."
     The Company projects a loss from continuing operations per share in the
first quarter of between $0.24 and $0.28 based on the de-leveraging of store
occupancy and SG&A expenses due to weak sales, partially offset by slight
improvements in merchandise margins. In addition, inventories are expected to be
down 10% by the end of the first quarter versus a year ago. The Company plans to
report May sales on June 1, 2006 and announce first quarter results on June 15,
2006.
     The Company also announced that it has retained JPMorgan to assist the
Company in evaluating strategic alternatives in an effort to enhance shareholder
value. JPMorgan will also advise management and the Board of Directors on a
potential transaction to sell the Company's proprietary credit card business, a
review of its store portfolio and the possible sale of other assets.
     The Company cautions that there can be no assurance that the exploration of
strategic alternatives will result in a transaction. The Company does not intend
to disclose developments with respect to the exploration of strategic
alternatives unless and until its Board of Directors has made a decision
regarding a specific transaction.

     Any forward-looking projections or statements made in this press release
should be considered in conjunction with the cautionary statements contained in
the Company's most recently filed report on Form 10-K. Management's expectations
and assumptions regarding planned store openings, financing of Company
obligations from operations, results from its new marketing, merchandising and
store operations strategies, and other future results are subject to risks,
uncertainties and other factors that could cause actual results to differ
materially from the anticipated results or other expectations expressed in the
forward-looking statements. Risks and uncertainties that may affect Company
operations and performance include, among others, the effects of terrorist
attacks or other acts of war, conflicts or war involving the United States or
its allies or trading partners, labor strikes, weather conditions or natural
disasters, volatility of fuel and utility costs, the general strength of the
economy and levels of consumer spending, consumer confidence, the availability
of new sites for expansion along with sufficient labor to facilitate growth, the
availability and proper functioning of technology and communications systems
supporting the Company's key business processes, the ability of the Company to
import merchandise from foreign countries without significantly restrictive
tariffs, duties or quotas and the ability of the Company to source, ship and
deliver items from foreign countries to its U.S. distribution centers at
reasonable prices and rates and in a timely fashion. The Company assumes no
obligation to update or otherwise revise its forward-looking statements even if
experience or future changes make it clear that any projected results expressed
or implied will not be realized.
     Pier 1 Imports, Inc. is North America's largest specialty retailer of
imported decorative home furnishings and gifts with Pier 1 Imports(R) stores in
49 states, Puerto Rico, Canada, and Mexico and Pier 1 kids(R) stores in the
United States.


     CONTACT: Pier 1 Imports, Inc., Fort Worth
              Cary Turner, 817-252-8400